Q1 2025 Altus Group Ltd Earnings Call

125 financial results conference call and webcast.

All lines have been placed on mute to prevent any background noise.

After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question during that time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star one a second time.

Speaker Change: Thank you and I would now like to turn the conference over to Camilla Bartosiewicz Chief Communications Officer. Please go ahead.

Camilla Bartosiewicz: Thank you Abby and hi, everyone. We're sorry for being a couple of minutes behind we understand there's still a few people are trying to get in so we just wanted to make a little more time.

Camilla Bartosiewicz: Welcome to the conference call and webcast discussing also excludes Q1 results for the period ended March 31 2025.

Camilla Bartosiewicz: Our press release MD&A financial statements and the slides that accompany our prepared remarks. They are all available on our website and as required have been filed with SEDAR plus after market close this afternoon.

Jim Hannan: Joined today by our CEO, Jim Hannan, our CFO and treasurer as well as with <unk>, the president of software and data.

Jim Hannan: Some of our remarks on this call and in our disclosure may contain forward looking information that is based on certain assumptions and therefore subject to risks and uncertainties that could cause actual results to differ materially from those projected.

Jim Hannan: Please refer to our forward looking information disclaimer in today's materials.

Jim Hannan: Please be reminded that Altice group uses certain non-GAAP financial measures ratios total of segments measures.

Jim Hannan: Management measures and supplementary and other financial measures as defined in national instrument 50 to 112.

Jim Hannan: We believe that these measures may assist investors in assessing our investment in our shares as they provide additional insight into our performance.

Jim Hannan: Readers are cautioned that they are not defined performance measures and do not have any standardized meaning under area for us and may differ from singular computation as reported by other entities and accordingly may not be comparable financial measures as reported by those entities.

Jim Hannan: These measures should not be considered in isolation or as substitutes for financial measures.

Jim Hannan: Repaired in accordance with IRS.

Jim Hannan: An explanation of these measures.

Tails in today's IR materials.

Jim Hannan: I would also like to point out that unless otherwise specified all percentage and basis points growth rates, we referred to on today's call will be on a constant currency basis over the same period in 2024.

Speaker Change: And over to you <unk>.

Speaker Change: Thanks, Camilla and thank you everyone for joining US today also has had a solid start to the year delivering recurring revenue growth steady margin expansion and improvements in cash generation.

Speaker Change: Some of the highlights.

Speaker Change: Analytics total and recurring revenues were up.

Speaker Change: Consolidated revenue was modestly down impacted by the appraisals and development Advisory segment.

Speaker Change: Profit from continuing operations improved by 47%.

Speaker Change: Adjusted EBITDA was up 29, 7% driving a 280 basis point margin improvement.

Speaker Change: With cash provided by operating activities and free cash flow were up meaningfully over last year and the comparative period last year included a contribution from property tax.

Speaker Change: Turning to the analytics business segment totaled.

Speaker Change: Total revenue growth was led by argument intelligence as discussed last quarter, we've been winding down some nonrecurring revenue lines of business.

Speaker Change: Really pleased with the consistent improvement.

Speaker Change: And adjusted EBITDA, which reflects higher quality of revenue operating efficiencies and our ongoing cost optimization efforts.

Speaker Change: Recurring revenue as a key metric for our performance.

Speaker Change: Rguest and Deere mentioned revenue streams are very low churn with retention rates above 100%.

Speaker Change: Q1 recurring revenue was up two 1%.

Speaker Change: Software growth was strong <unk> growth was modest as expected.

Speaker Change: As you recall there is seasonality with BMS historically Q4 represents our largest quarter for Vms revenue.

Speaker Change: Our margins continue to expand up 200 basis points in the quarter above guidance.

Speaker Change: Drivers of our margin expansion included revenue growth our portfolio optimization efforts.

Fees from our Global Service Center.

Speaker Change: It's from restructuring activities and our overall expense growth moderation.

Speaker Change: Definitely driving towards our FY 2026th target of approximately 35%.

Speaker Change: Turning to analytics new bookings.

Speaker Change: This metric reflects new and incremental business.

Speaker Change: We're pleased with a 34, 3% improvement in recurring new bookings, which included strong software bookings and a $5 million of the $50 million three year subscription agreement with Ryan tax.

Operator: Welcome everyone to Altus Group's first quarter 2025 financial results conference call and webcast.

We believe that these measures may assist investors in assessing our investment in our shares as they provide additional insight into our performance.

Operator: All lines have been placed on mute to prevent any background After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 a second time. Thank you.

Speaker Change: Excluding this deal recurring new bookings growth was three 1%.

Readers are cautioned that they are not defined performance measures and do not have any standardized meaning under area for us and may differ from singular computation as reported by other entities and accordingly may not be comparable financial measures as reported by those entities.

Speaker Change: Turning briefly to our cloud adoption rate.

Speaker Change: Having reached 90% abusers contracted on the cloud we are now retiring this metric from our external reporting.

Camilla Bartosiewicz: And I would now like to turn the conference over to Camilla Bartosiewicz, Chief Communications Officer. Please go ahead. Thank you, Abby. And hi, everyone. We're sorry for being a couple of minutes behind. We understand there's still a few people trying to get in. So we just wanted to make a little more time.

Speaker Change: Finally at appraisals and development advisory.

Its measures should not be considered in isolation or as substitutes for financial measures.

Speaker Change: CRE transactions remain muted revenue came in lighter than guidance.

Prepared in accordance with <unk>.

Speaker Change: However, our restructuring activities are paying off driving $1 3 million improvement in adjusted EBITDA in Q1.

An explanation of these measures as detailed in today's IR materials.

I would also like to point out that unless otherwise specified all percentage and basis points growth rates to be referred to on today's call will be on a constant currency basis over the same period in 2024.

Camilla Bartosiewicz: Well, welcome to the conference call and webcast discussing Altus Group's Q1 results for the period ended March 31st, 2025. Our press release, MD&A, financial statements, and the slides that accompany our prepared remarks. They're all available on our website and, as required, have been filed to CDER Plus after market close this afternoon.

Speaker Change: In line with guidance.

Speaker Change: Transitioning to the balance sheet.

Speaker Change: On the sale of the property tax business in January our cash position at the end of the quarter increased to $491 9 million.

And over to you.

Speaker Change: Thank you Camilla and thank you everyone for joining US today also has had a solid start to the year delivering recurring revenue growth.

Speaker Change: We had $158 9 million in bank debt at the end of the quarter, representing a 144 <unk> funded debt to EBITDA ratio.

Camilla Bartosiewicz: I'm joined today by our CO, Jim Hannon, our CFO, Pawan Chhabra, as well as Richard Sarkis, the President of Software and Data. Some of the remarks on this call and in our disclosure may contain forward-looking information that is based on certain assumptions and therefore subject to risks and uncertainties that could cause actual results to differ materially from those projected. Please refer to our forward-looking information disclaimer in today's material.

Speaker Change: Margin expansion and improvements in cash generation.

Speaker Change: During the quarter, we deployed $76 3 million towards a share buyback, reducing our outstanding shares to $44 4 million.

Speaker Change: Some of the highlights.

Speaker Change: Analytics total and recurring revenues were up.

Speaker Change: Holidayed revenue was modestly down impacted by the appraisals and development Advisory segment.

Speaker Change: We also reduced our debt by $127 million in the quarter.

Speaker Change: Restructuring costs were $6 2 million and dividend payments were $6 5 million.

Speaker Change: Profit from continuing operations improved by 47%.

Speaker Change: Adjusted EBITDA was up 29.7% driving a 280 basis point margin improvement.

Speaker Change: Cash from operations continues to be strong driven by improvements in working capital.

Camilla Bartosiewicz: Please be reminded that Altus Group uses certain non-GAAP financial measures, ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in National Instruments 52-112. We believe that these measures may assist investors in assessing our investment in our shares as they provide additional insight into our performance. Readers are cautioned that they are not defined performance measures and do not have any standardized meaning under IFRS and may differ from similar computations as reported by other entities and accordingly may not be comparable to financial measures as reported by those entities. These measures should not be considered in isolation or as substitutes for financial measures prepared in accordance with IFRS.

Speaker Change: We expect our cash conversion to improve throughout the year as our restructuring efforts take hold.

Speaker Change: With cash provided by operating activities and free cash flow were up meaningfully over last year and the comparative period last year included a contribution from property tax.

Rich Circuits: With that I'll turn it over to rich circuits president of software and data to discuss benchmark manager. Thanks Robyn.

Speaker Change: Turning to the analytics business segment.

Speaker Change: To me here and I'm proud to announce that realized benchmark manager in Q1.

Speaker Change: Total revenue growth was led by argument intelligence as discussed last quarter, we've been winding down some nonrecurring revenue lines of business.

Speaker Change: Benchmark manager at least significant additions of Argus intelligence and builds on our previously announced portfolio manager capability, which was launched last September.

Speaker Change: Really pleased with the consistent improvement in adjusted EBITDA, which reflects higher quality of revenue operating efficiencies and our ongoing cost optimization efforts.

Speaker Change: Industry benchmarking of traditionally relied on backward looking static and generic averages to track performance.

Now with benchmark manager are about what we believe to be the most comprehensive evaluation data users.

Speaker Change: Recurring revenue as a key metric for our performance.

Speaker Change: <unk> and Dear most revenue streams have very low churn with retention rates above 100%.

Speaker Change: Users can immediately see their asset and portfolio stack up against the market.

Camilla Bartosiewicz: An explanation of these measures is detailed in today's IRB Curative. I would also like to point out that unless otherwise specified, all percentage and basis point growth rates we report to on today's call will be on a constant currency basis over the same period in 2024.

Speaker Change: Q1 recurring revenue was up two 1%.

Speaker Change: Crucially this enables CRA professionals to track their portfolios performance across markets.

Speaker Change: Rguest software growth was strong <unk> growth was modest as expected.

Speaker Change: Classes and at different points in the cycle.

Speaker Change: As you recall, there's seasonality to Vms historically Q4 represents our largest quarter for Vms revenue.

Speaker Change: This provides a powerful insight into what it's driving movements in value right down to the individual asset level.

Jim Hannon: And okay, over to you, Kevin. Thanks, Camilla, and thank you, everyone, for joining us today. Altus had a solid start to the year, delivering recurring revenue growth, steady margin expansion, and improvements in cash generation. Let me hit some of the highlights. Analytics total and recurring revenues were up. Consolidated revenue was modestly down, impacted by the appraisals and development advisory segment. Profit from continuing operations improved by 47%. Justice Iveda was up 29.7% driving a 280 basis point margin improvement. Both cash provided by operating activities and free cash flow were up meaningfully over last year and the comparative period last year included the contributions from property tax.

Speaker Change: Ultimately, enabling users to drive portfolio performance and mitigate risk we have been very encouraged by client interest and the quick pipeline built with that over to Youtube.

Speaker Change: Our margins continue to expand up 200 basis points in the quarter above guidance.

Speaker Change: Drivers of our margin expansion included revenue growth our portfolio optimization efforts.

Speaker Change: Alright, thanks rich.

Speaker Change: Hello, everybody very happy to be back in Toronto.

Speaker Change: Fees from our Global Service Center.

Speaker Change: Fitz from restructuring activities.

Speaker Change: I think it was two years ago side of assuring that said go Leafs may so very good throughout west for trying to convince me last night to say to go Oilers.

Speaker Change: Our overall expense growth moderation.

Speaker Change: We're definitely driving towards our FY 2026 target of approximately 35%.

Speaker Change: I guess, just wondering my Canadian home so they would go with it.

Speaker Change: Turning to analytics new bookings.

Speaker Change: This metric reflects new and incremental business for.

Speaker Change: Very happy everyone's here alright, guys. Our strong performance in Q1 demonstrates the continued execution of our growth initiatives and our commitment to delivering value for stakeholders.

Speaker Change: We're pleased with a 34, 3% improvement in recurring new bookings, which included strong software bookings and a $5 million of the 50 million three year subscription agreement with Brian tax.

Speaker Change: As you heard component today, the teams delivered strong financial results resilient recurring revenue performance and sustained margin expansion has been a consistent theme.

Speaker Change: Excluding this deal recurring the bookings growth was three 1%.

Jim Hannon: Turning to the analytics business side. Total revenue growth was led by Argus Intelligence. As discussed last quarter, we've been winding down some non-recurring revenue lines of business. We're really pleased with the consistent improvement and adjusted EBITDA, which reflects high quality of revenue, operating efficiencies, and our ongoing cost optimization efforts. Occurring revenue is a key metric for our performance. Argus and VMS revenue streams have very low churn with retention rates above 100 percent. Q1, recurring revenue was up 2.1%. Argus software growth was strong. BMS growth was modest as expected. Did you recall their seasonality to VMS?

Speaker Change: Our operational improvements and ongoing portfolio simplification is translating to higher quality earnings compared to a year ago. This drove strong improvements in cash flows in Q1, we returned capital to shareholders by repurchasing $76 million or sorry from $6 million per shares.

Speaker Change: Turning briefly to our cloud adoption rate.

Speaker Change: Having reached 90% abusers contracted on the cloud we are now retiring this metric from our external reporting.

Speaker Change: Finally at appraisals and development advisory.

Speaker Change: Operationally, we delivered significant bookings growth very pleased with the adoption of Argus intelligence instead on capabilities.

Speaker Change: CRE transactions remain muted revenue came in lighter than guidance.

Speaker Change: However, our restructuring activities are paying off driving $1 3 million improvement in adjusted EBITDA in Q1.

Speaker Change: We are currently over 300 clients contracted the largest intelligence and sign the dozens of new asset based pricing yields during the quarter.

Speaker Change: In line with guidance.

Speaker Change: Transitioning to the balance sheet.

Speaker Change: We hit our 90% cloud conversion target.

Speaker Change: On the sale of the property tax business in January our cash position at the end of the quarter increased to $491 9 million.

Speaker Change: This was partially driven by a large service provider agreement with an asset based pricing structure, which includes our existing intelligence and <unk> solutions. This represents the future state of our commercial contracts, allowing unlimited users and driving expanded adoption within our clients.

Jim Hannon: Historically, Q4 represents our largest quarter for VMS revenue. Our margins continue to expand up 200 basis points in the quarter about guidance. Drivers of our margin expansion include revenue growth, our portfolio optimization efforts, efficiencies from our global service center, benefits from restructuring activities, and our overall expense growth moderation. steadily driving towards our FY 2026 target of approximately 35%.

Speaker Change: We had $158 9 million in bank debt at the end of the quarter, representing a 144 acts funded debt to EBITDA ratio.

Speaker Change: During the quarter, we deployed $76 3 million towards a share buyback, reducing our outstanding shares to $44 4 million.

Speaker Change: Re leasing benchmark manager at the end of the quarter was a key strategic and operational milestone.

Speaker Change: With this capability all of this demonstrates its unique position to help clients drive performance.

Speaker Change: We also reduced our debt by $127 million in the quarter.

Speaker Change: Smart management will also make our internal teams significantly more productive.

Speaker Change: Restructuring costs were $6 2 million and dividend payments for $6 5 million.

Speaker Change: During the quarter, we integrated for Barry with the Argus Calc engine for modeling multifamily assets in the U S.

Speaker Change: Cash from operations continues to be strong driven by improvements in working capital.

Jim Hannon: Turning the analytics new booking. This metric reflects new and incremental business. We're pleased with the 34.3% improvement in recurring new bookings, which included strong software bookings, and a $5 million of the $15 million three-year subscription agreement with Ryan Taft. Excluding this deal, recurring new bookings growth is 3.1%.

Speaker Change: We expect our cash conversion to improve throughout the year as our restructuring efforts take hold.

Disconnects for ordinary data to our platform, while delivering enhanced functionality for our ordinary users.

Rich: That I will turn it over to rich circuits president of software and data to discuss benchmark manager. Thanks Robyn.

Speaker Change: This also expands our addressable market, particularly in the U S with our initial focus on the multifamily sector.

Speaker Change: To me here and proud to announce that we launched benchmark manager in Q1.

A reminder, for Barry brings simplicity of use through its aksel interface.

Speaker Change: Benchmark manager at least significant additions of Argus intelligence builds on our previously announced portfolio manager capability, which was launched last September.

Speaker Change: Looking ahead to the rest of the year, we remain committed to executing against our guidance, which anticipates a steady improvement in market conditions, representing a stronger second half.

Jim Hannon: Turning briefly to our cloud adoption rate. Having reached 90% of users contracted on the cloud, we are now retiring this metric from our external reporting.

Speaker Change: Industry benchmarking traditionally relied on the back of booking static generic averages to track performance.

Speaker Change: At the same time, we recognize that macroeconomic volatility, particularly surrounding tariffs could introduced uncertainty. That's why we're staying closely connected with our clients monitoring leading indicators and adjusting our operations as needed to navigate the evolving landscape.

Jim Hannon: Finally, at Appraisals and Development Advisory, as CRE transactions remain muted, revenue came in lighter than guidance. However, our restructuring activities are paying off, driving $1.3 million improvement in adjusted EBIT and Q1, in line with guidance.

Speaker Change: Now with benchmark manager are about what we believe to be the most comprehensive evaluation data users.

Speaker Change: Users can immediately see how their assets and portfolio stack up against the market.

Speaker Change: Crucially this enables CRA professionals to track their portfolios performance across markets.

Speaker Change: We remain bullish on the long term prospects for Altus group.

Speaker Change: Driven by strong secular trends in commercial real estate compelling new product innovations are refined pricing model driving client adoption and exceptionally strong balance sheet and a dedicated team committed to delivering value.

Jim Hannon: Transitioning to the balance On the sale of the property tax business in January, our cash position at the end of the quarter increased to $491.9 million. We had $158.9 million in bank debt at the end of the quarter, representing a 1.44x funded debt to EBITDA ratio. During the quarter, we deployed $76.3 million towards a share buyback, reducing our outstanding shares to $44.4 million. We also reduced our debt by $127 million in the quarter. Restructuring costs were $6.2 million and dividend payments were $6.5 million. Cash from operations continues to be strong, driven by improvements in working capital.

Speaker Change: That classes at different points in the cycle.

Speaker Change: This provides powerful insight into what it's driving movements in value right down to the individual asset level.

Chip: Ultimately, enabling users to drive portfolio performance and mitigate risk we have been very encouraged by client interest and a great pipeline building with that over to you chip.

Speaker Change: Before I open up the line for questions I'm pleased to share that we're planning to host an investor day on September 19th in New York, We think that would be the right forward in time to discuss new metrics stay tuned for more details to be shared in due course, and we hope you can join US Okay lets open to questions the lineup for questions Savi.

Chip: Alright, thanks rich.

Chip: Hello, everybody very happy to be back in Toronto.

Chip: I think it was two years ago side of assuring that said go Leafs. So we're going to try out west for trying to convince me last night to say to go Oilers.

Speaker Change: Thank you.

Speaker Change: And if you have dialed in and would like to ask a question. Please press star one on your telephone keypad to raise your hand and join the queue.

Chip: I guess, that's what my Canadian home, so that's cyclical weakness.

Speaker Change: Very happy everyone's here alright, guys. Our strong performance in Q1 demonstrates the continued execution of our growth initiatives and our commitment to delivering value to stakeholders.

Speaker Change: I would like to withdraw your question simply press Star one a second time.

Jim Hannon: We expect our cash conversion to improve throughout the year as our restructuring efforts take hold.

Speaker Change: If you are called upon to ask your question and our listening via Speakerphone on your device. Please pickup your handset and ensure that your phone is not on mute when asking your question.

Speaker Change: As you heard component today, the teams delivered strong financial results resilient recurring revenue performance and sustained margin expansion has been a consistent theme.

Richard Sarkis: With that, I'll turn it over to Richard Sarkis, President of Software and Data, to discuss Benchmark Manager. Thanks, Robin. I'm happy to be here, and I'm proud to announce that we launched Benchmark Manager in Q1. Benchmark Manager is a significant addition to Argus Intelligence and builds on our previously announced Portfolio Manager capability, which was launched last September. Industry benchmarking has traditionally relied on backward-looking, static, and generic averages to track performance. Now, with Benchmark Manager powered by what we believe to be the most comprehensive valuation data set, users can immediately see how their assets and portfolios stack up against the market.

Speaker Change: Again, it is star one if you would like to ask a question.

Speaker Change: And our first question comes from the line of Stephen Macleod with BMO capital markets. Your line is open.

Speaker Change: Our operational improvements and ongoing portfolio simplification is translating to higher quality earnings compared to a year ago. This drove strong improvements in cash flows in Q1, we returned capital to shareholders by repurchasing $76 million or sorry from $6 million per shares.

Stephen Macleod: Thank you and good evening everyone.

Stephen Macleod: Just wanted to ask about the benchmark manager, which which I you know its interesting to see.

Do you hear about that from rich.

Speaker Change: Operationally, we delivered significant bookings growth very pleased with the adoption of Argus intelligence and its add on capabilities.

Stephen Macleod: Just curious if you can share a little bit about the initial feedback from from clients and kind of how you see that product evolving over the next.

Speaker Change: We are currently over 300 clients contracted the largest intelligence inside the dozens of new asset based pricing deals during the quarter.

Stephen Macleod: You know 12 months or next few years.

Stephen Macleod: Great question. Thanks.

Stephen Macleod: We're really excited with the client feedback we've talked to hundreds of customers over the last several months and quarters as we develop this.

Richard Sarkis: Crucially, this enables CRE professionals to track their portfolio's performance across markets, asset classes, and at different points in the cycle. This provides powerful insight into what is driving movement and value right down to the individual asset level. ultimately enabling users to drive portfolio performance and mitigate risk. We have been very encouraged by client interest and the quick pipeline build.

Speaker Change: We hit our 90% cloud conversion target.

Speaker Change: This was partially driven by a large service provider agreement with an asset based pricing structure, which includes our existing intelligence and four very solutions. This represents the future state of our commercial contracts, allowing unlimited users and driving expanded adoption within our clients.

Speaker Change: Figure it out what really they were looking for but they didn't have.

Speaker Change: The response has been really solid now of course, we will continue to iterate on that.

Speaker Change: Rapid fashion, but the response has been very positive.

Speaker Change: Releasing benchmark manager at the end of the quarter was a key strategic and operational milestone.

Speaker Change: Okay, that's great and just to just to clarify I mean, that's that's a live product that youre currently selling right now.

Jeff: With that, over to you, Jeff. All right. Thanks, Rich. Hello, everybody. Very happy to be back in Toronto. It was two years ago, I said go Leafs, some of our guys from out west were trying to convince me last night to say go Oilers. I guess Toronto's more of my Canadian home, so I'll have to stick with goalies. Very happy everyone's here.

Speaker Change: With this capability all of this demonstrates its unique position to help clients drive performance.

Speaker Change: Yes, that's why we launched in Q1.

Speaker Change: And we'll look to evolve it over the next few years.

Speaker Change: <unk> management will also make our internal teams significantly more productive.

Speaker Change: Yeah, great. Okay. Thank you.

Speaker Change: And then I just wanted to ask about the you cited in your recurring revenue is just a new contract with Ryan and I just wanted to confirm I think that when did you say that's a multi year contract and do you expect that to continue to have similar contribution as you think about the rest of the year over the next few years.

Speaker Change: During the quarter, we integrated for Barry with the August Calc engine for modeling multifamily assets in the U S.

Speaker Change: Disconnects for ordinary data to our platform, while delivering enhanced functionality for our ordinary users.

Jeff: All right, guys, our strong performance in Q1 demonstrates the continued execution of our growth initiatives and our commitment to delivering value to stakeholders. As you heard from Pawan today, the teams delivered strong financial results, resilient recurring revenue performance, and sustaining margin expansion has been a consistent theme. Our operational improvements and ongoing portfolio simplification is translating to higher quality earnings compared to a year ago. This drove strong improvements in cash flows. In Q1, we returned capital to shareholders by repurchasing $76 million for shares. Operationally, we delivered significant new bookings growth. I'm very pleased with the adoption of Argus Intelligence and its add-on capabilities.

Speaker Change: This also expands our addressable market, particularly in the U S with our initial focus on the multifamily sector.

Speaker Change: Yes.

Speaker Change: It's a good question Steven as you recall.

Speaker Change: We intend to deal with it it's a three year contract.

Speaker Change: As a reminder, for Barry brings simplicity of use through its accelerated phase.

Speaker Change: For the.

Speaker Change: Looking ahead to the rest of the year, we remain committed to executing against our guidance, which anticipates a steady improvement in market conditions, representing a stronger second half.

Speaker Change: <unk> solutions with.

Speaker Change: With contributing about $5 million per year, and then obviously, we're looking forward to continuing that relationship with try and tax.

Speaker Change: At the conclusion of the <unk> of the contract.

Speaker Change: At the same time, we recognize that macroeconomic volatility, particularly surrounding tariffs could introduced uncertainty. That's why we're staying closely connected with our clients monitoring leading indicators and adjusting our operations as needed to navigate the evolving landscape.

Speaker Change: Alright, Okay. That's great and then just just lastly for me just on the Q2 guide guidance.

Speaker Change: Can you talk about just some of the revenue components around the analytics expectation for.

Jeff: We have currently over 1,300 clients contracted on Argus Intelligence and signed dozens of new asset-based pricing deals in the quarter. We hit our 90% cloud conversion target. This was partially driven by a large service provider agreement with an asset-based pricing structure, which includes Argus Intelligence and ForBerry Solutions. This represents the future state of our commercial contracts, allowing unlimited users and driving expanded adoption within our clients.

Speaker Change: 1% to 3% total revenue growth.

Speaker Change: We remain bullish on the long term prospects for Altus group.

Speaker Change: What's.

Speaker Change: What the components are in to that.

Speaker Change: Driven by strong secular trends in commercial real estate compelling new product innovations are refined pricing model driving client adoption and exceptionally strong balance sheet and a dedicated team committed to delivering value.

Speaker Change: Yes.

Speaker Change: Where we're continuing to keep a very close eye to.

Speaker Change: To the macros with that tenant we're pretty comfortable with regards to our guidance for Q2, we're going to continue to.

Savi: Before I open up the line for questions I'm pleased to share that we're planning to host an investor day on September 19th in New York, We think that would be the right forward in time to discuss new metrics stay tuned for more details to be shared in due course, and we hope you can join US Okay, let's open the questions the provider for questions Savi.

Speaker Change: You have seen positive momentum as we saw in Q1.

Speaker Change: On August intelligence in the software elements of the revenue component.

Jeff: Releasing Benchmark Manager at the end of the quarter was a key strategic and operational milestone. With this capability, Altus demonstrates its unique position to help clients drive performance. Benchmark Manager will also make our internal teams significantly more productive. During the quarter, we integrated ForBerry with the Argus calc engine for modeling multifamily assets in the U.S. This connects ForBerry data to our platform while delivering enhanced functionality for our ForBerry users. This also expands our addressable market, particularly in the U.S., with our initial focus on the multifamily sector. As a reminder, ForBerry brings simplicity of use through its Excel interface.

Speaker Change: We are seeing modest growth.

Speaker Change: Vms and as you know a lot of Vms is tied to the timing around the asset deployment.

In the current macro environment.

Speaker Change: Thank you.

Speaker Change: And if you have dialed in and would like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue.

Speaker Change: While we're still seeing growth.

Speaker Change: The growth is not as robust as software and so as you think about the guidance. We're thinking that Q2 is really.

Speaker Change: I would like to withdraw your question simply press Star one a second time.

Speaker Change: A continuation of the momentum that we built in Q1, we continue to see good momentum on the software side and modest growth in BMS.

Speaker Change: If you are called upon to ask your question and our listening via Speakerphone on your device. Please pick up your handset and ensure that your phone is not on mute when asking your question.

Speaker Change: Steve Let me add to that on the <unk>.

Poland.

Speaker Change: Again, it is star one if you would like to ask a question.

Speaker Change: If you recall from last quarter, we talked about the fact that we sold some non core businesses and analytics.

Speaker Change: And our first question comes from the line of Stephen Macleod with BMO capital markets. Your line is open.

Speaker Change: Which brings down the overall growth rate, but thats why we.

Jeff: Looking ahead to the rest of the year, we remain committed to executing against our guidance, which anticipates a steady improvement in market conditions, representing a stronger second half. At the same time, we recognize that macroeconomic volatility, particularly surrounding tariffs, could introduce uncertainty. That's why we're staying closely connected with our clients, monitoring leading indicators, and adjusting our operations as needed to navigate the evolving landscape. We remain bullish on the long-term prospects for Altus Group. driven by strong secular trends in commercial real estate, compelling new product innovations, a refined pricing model driving client adoption, an exceptionally strong balance sheet, and a dedicated team committed to delivering value.

Stephen Macleod: Thank you and good evening everyone.

Speaker Change: Particularly emphasized the higher quality revenue that we have now.

Stephen Macleod: Just wanted to ask about the benchmark manager, which are which are you know its interesting to see.

Speaker Change: And we are also very deliberately.

Stephen Macleod: Hear about that from rich.

Stephen Macleod: Just curious if you can share a little bit about the initial feedback from from clients and kind of how you see that product evolving over the next.

Speaker Change: Not pursuing non core.

Speaker Change: Data clients and we are not heavily pursuing nonrecurring service agreements. So there's a lot of focus going on here on the.

Stephen Macleod: 12 months or next few years.

Stephen Macleod: Great question. Thanks.

Stephen Macleod: We're really excited with the client feedback we've talked to hundreds of customers over the last several months and quarters as redeveloped and figure it out what really they were looking for but they didn't have.

Speaker Change: The high margin recurring core client.

Speaker Change: Activities.

Speaker Change: Great.

Speaker Change: That's good incremental color Jim Thank you.

Stephen Macleod: And the response has been really solid now of course, we will continue to iterate on that in a very rapid fashion, but the response has been very positive.

Speaker Change: Okay. That's great. Thanks, Thanks, so much guys.

Stephen Macleod: Thanks, Steve.

Stephen Macleod: And your next question comes from the line of Richard <unk> with National Bank Financial Your line is open.

Jeff: Before I open up the line for questions, I'm pleased to share that we're planning to host an Investor Day on September 9th in New York. We think that would be the right forum and time to discuss new metrics. Stay tuned for more details to be shared in due course, and we hope you can join us.

Stephen Macleod: Okay, that's great and just to just to clarify I mean, that's that's a live product that youre currently selling right now.

Speaker Change: Yes. Thank you.

Speaker Change: Just kind of wanted to get an update in terms of your conversations with clients today in terms of when theyre thinking market to recover or is it still largely around.

Stephen Macleod: Yes, that's why we launched in Q1.

Stephen Macleod: And we'll we'll look to evolve it over the next few years.

Operator: Okay, let's open the questions, the line up for questions, Abby. Thank you. And if you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the If you would like to withdraw your question, simply press star 1 a second time.

Stephen Macleod: Yeah, great. Okay. Thank you.

Speaker Change: Rates and I guess now tariffs or is there something sort of more specific to the CRE market.

Stephen Macleod: And then I just wanted to ask about the.

Stephen Macleod: You cited in your recurring revenue is just a new contract with with Ryan and I just wanted to confirm I think that when did you say that's a multi year contract and do you expect that to continue to have similar contribution as you think about the rest of the year over the next few years.

Richard: Now you know that Richard it's.

Richard: The clients are they there we did we had a webinar today.

Operator: If you're called upon to ask your question and are listening via speakerphone on your device, please take up your handset and ensure that your phone is not on mute when asking your question. Again, it is star one if you would like to ask a question.

Richard: So what we're seeing from clients as we are seeing actually improvements in underlying NOI.

Stephen Macleod: Yes.

Steven: It's a good question Steven as you recall we.

NOI, and then valuations, including an office, which is an interesting turn it several quarters in a row. So that's.

Stephen Macleod: We intend to deal with it it's a three year contract.

Stephen Macleod: Four.

Stephen Macleod: And our first question comes from the line of Stephen MacLeod with BMO Capital Markets. Your line is open. Thank you.

Stephen Macleod: Dan installations.

Richard: Point of optimism amongst our client base.

Stephen Macleod: Contributing about $5 million per year, and then obviously, we're looking forward to continuing that relationship with try and tax at the conclusion of the <unk> of the contract.

Richard: <unk>.

Richard: Of course being able to predict their cost of capital.

Stephen Macleod: Good evening, everyone. I just wanted to ask about the Benchmark Manager, which it's interesting to hear about that from Rich.

Richard: <unk> is a little trickier, so we remain cautious on that.

Stephen Macleod: Alright, Okay. That's great and then and then just just lastly for me just on the Q2 guide guidance.

Richard: First that we're staying very close to the clients.

Richard Sarkis: I'm just curious if you can share a little bit about initial feedback from clients and kind of how you see that product evolving over the next 12 months or next few years. Great question. Thanks. We're really excited with the client feedback. We've talked to hundreds of customers over the last several months and quarters as we developed this and figured out what really they were looking for that they didn't have. And the response has been really solid. Now, of course, we'll continue to iterate on that in a very rapid fashion, but the response has been very positive.

Richard: <unk>.

Richard: The leading indicators for us here and we will manage the bottom line very closely as we always do.

Stephen Macleod: Can you talk about just some of the revenue components around the analytics expectation for.

Stephen Macleod: 1% to 3% total revenue growth.

Richard: So on the recovery.

Stephen Macleod: What's.

Stephen Macleod: What the components are into that.

Richard:

Richard: Yes.

Richard: Everyone in the World is watching it can change day to day, but.

Stephen Macleod: Yes.

Stephen Macleod: Where we.

Stephen Macleod: We're continuing to keep a very close eye can.

Richard: At.

Richard: What we know right now that some of our clients' activities.

Stephen Macleod: To the macros with that tenant we're pretty comfortable with regards to our guidance for Q2, we're going to continue to.

Richard: And with the new products coming out.

Richard: We feel good about our guidance range and we have flexibility.

Stephen Macleod: You have seen positive momentum as we saw in Q1.

Richard: Around that guidance to maintain our margins so.

Stephen Macleod: On August intelligence in the software elements of.

Richard: So we're still banking on the back half of the year that we kind of work through the volatility that we're seeing right now and that things stabilize.

Stephen Macleod: The revenue component.

Stephen Macleod: Okay, that's great. And just to just to clarify, I mean, that's that's a live product that you're currently selling right Yeah, that's live. We launched it in Q1, and we'll look to evolve it over the next few years. Yeah, great. Okay, thank you.

Stephen Macleod: We are seeing modest growth.

Stephen Macleod: And Dms and as you know a lot of Vms is tied to the timing around asset deployment.

Richard: By the time, we enter the second half.

Stephen Macleod: And in the current macro environment.

Speaker Change: Okay, Great and then I guess in a related question.

Stephen Macleod: While we are still seeing growth.

Stephen Macleod: The growth is not as robust as software and so as you think about the guidance. We're thinking that Q2 is really.

Stephen Macleod: And then I just wanted to ask about the you cited in your current revenues, just a new contract with with Ryan.

Richard: Have any of your clients or have you observed any.

Speaker Change: Kind of permanent structural changes in the market.

Stephen Macleod: A continuation of the momentum that we built in Q1.

Jim Hannon: And I just wanted to confirm, I think, probably just say that's a multi year contract. And do you expect that to continue to have similar contribution as you think about the rest of the year or over the next few years? Yeah, it's a good question, Stephen. As you recall, we said that the deal was it's a three year contract for for data type solutions that would contribute about 5 million per year. And then obviously, we're looking forward to continuing that relationship with Ryan Tax at the conclusion of this first iteration of the contract. Right, okay.

Speaker Change: If so how those changes would inform your decisions to invest in areas that certain areas of product or R&D.

Stephen Macleod: <unk> got good momentum on the software side and modest growth in BMS.

Stephen Macleod: Steve Let me add to that on the <unk>.

Speaker Change: Yes.

Speaker Change: I see a positive structural change, which is there is more private debt available. So the liquidity in the market is good and that has us doubling down on our focus on making sure. We are tailoring, particularly our our Vms services to the particular needs of the debt side.

Stephen Macleod: Components.

Speaker Change: If you recall from last quarter, we talked about the fact that we sold some non core businesses and analytics.

Speaker Change: Which brings down the overall growth rate, but thats why we.

Speaker Change: Particularly emphasized the higher quality revenue that we have now.

Speaker Change: Side of the market.

Speaker Change: We continue to grow clients and funds there and we'll continue to build out our expertise in that.

Speaker Change: And we are also very deliberately.

Speaker Change: Not pursuing non core.

Stephen Macleod: That's great.

Stephen Macleod: And then and then just, just lastly, for me, just on the Q2 guide guidance, can you talk about just some of the revenue components around the analytics expectation for, you know, one to 3% total revenue growth, kind of what's, you know, what, what, what the components are into that? Yeah, look, we're, you know, we're continuing to keep a very close eye to the macros. With that said, we're pretty comfortable with regards to our guidance for Q2. We're going to continue to, you know, see positive momentum, as we saw in Q1, on Argus Intelligence and the software elements of the revenue component.

Speaker Change: Okay.

Speaker Change: Data clients and we are not heavily pursuing nonrecurring service agreements. So there's a lot of focus going on here on the.

Speaker Change: Okay and then just the last one for me I think you've talked about acquisitions in the past and you clearly have quite a bit of capacity now from a balance sheet perspective to do that can you just sort of remind this.

Speaker Change: The high margin recurring.

Speaker Change: The areas that you're most focused on and as the market for valuation today looking more compelling given that sort of soft backdrop are.

Speaker Change: Core client.

Speaker Change: Activities.

Speaker Change: Great.

Speaker Change: That's good incremental color Jim Thank you.

Speaker Change: Have they moved up down like stay the same just curious to see what the uptake with that funds that could be thanks.

Speaker Change: Okay. That's great. Thanks, Thanks, so much guys.

Stephen Macleod: Thanks, Steve.

Speaker Change: And your next question comes from the line of Richard <unk> with National Bank Financial Your line is open.

Speaker Change: Yes.

Speaker Change: There were all up.

Speaker Change: The whole market saw there were a lot of prop tech Darling into a few years ago.

Speaker Change: Yes. Thank you.

Richard: Just kind of wanted to get an update in terms of your conversations with clients today in terms of when they are thinking market to recover is it still largely around.

Speaker Change: That that you saw us do our key strategic acquisitions, and you're now seeing those come through in our new products. So <unk> is the heart of the Altice Saidi, which allows us to tie all of the models to the benchmarking the strategy <unk> acquisition gives us the attribution analysis that provides.

Jim Hannon: We are seeing modest growth in VMS. And as you know, a lot of timing around asset deployments. And in the current macro environment, while we're still seeing growth, the growth is not as robust as software. And so as you think about the guidance, we're thinking about Q2 is really a continuation of the momentum that we built in Q1.

Richard: Rates and I guess now tariffs or is there something sort of more specific to the CRE market.

Richard: Now you know that Richard.

Speaker Change: That extra insight to our clients. So once you saw us make a cup and finance active put us on the debt side of things and for Berry.

Richard: The clients are they there we did we had a webinar today.

Jim Hannon: We continue to see good momentum on the software side and modest growth in VMS. Hey Steve, let me add to that on the components.

Richard: So what we're seeing from clients as we are seeing actually improvements in underlying.

Speaker Change: Gives us that.

Richard: NOI, and then valuations, including an office, which is an interesting turn it several quarters in a row. So that's.

Four of our global footprint and ease of use that expands our market. So outside of those key strategic acquisitions, you saw us really back off other than they.

Jim Hannon: If you recall from last quarter, we talked about the fact that we sold some non-core businesses in analytics. which brings down the overall growth rate. But that's why we've particularly emphasized the higher quality revenue that we have now. And we are also very deliberately not pursuing non-core data clients, and we are not heavily pursuing non-recurring service agreements. So there's a lot of focus going on here on the... the the high margin recurring core client activity. Great. That's good incremental color, Jim. Thank you. Okay, that's great. Thanks so much, guys.

Richard: A point of optimism amongst our client base.

Richard:

Our attempt to go for reps.

Richard: Of course being able to predict their cost of capital.

Speaker Change: <unk> would have been a great acquisition, but other than that you saw us back off because our perspective was valuations were extremely lofty they didn't meet our IRR requirements at our hurdle rates for acquisitions, we maintain.

Richard: It is a little trickier, so we remain cautious on that.

Richard: First that we're staying very close to the clients.

Richard: <unk>.

Richard: On the leading indicators for us here and we will manage the bottom line very closely as we always do.

Speaker Change: A very specific set of guidelines of how and when we'll pull the trigger on acquisitions in the financial hurdles and the strategic fit that they have to have that said valuations have come down significantly and we're getting a look at interesting things, but we're in no hurry, we're going to take our time were going to be super.

Richard: So on the recovery.

Richard:

Richard: Look.

Richard: Everyone in the World is watching it can change day to day, but.

Richard: For with <unk>.

Richard: What we know right now that some of our clients' activities.

Richard: And with the new products coming out.

Speaker Change: Smart about this I don't feel like that cash is burning a hole in my pocket.

Richard: We feel good about our guidance range and we have flexibility.

Stephen Macleod: Thanks, Keith.

Richard: Around that guidance to maintain our margins so.

Speaker Change: Right now, we're very happy to be returning capital to shareholders through a very strong share buyback program.

Richard Tse: And your next question comes from the line of Richard Tse with National Bank Financial. Your line is open. Yes, thank you. I just kind of wanted to get an update in terms of your conversations with clients today in terms of when they're thinking market to recover. Is it still largely around rates and I guess now tariffs or is there something sort of more specific to the CRE market?

Richard: So we're still banking on the back half of the year that we kind of work through the volatility that we're seeing right now in that.

Speaker Change: Okay, great. Thank you.

Speaker Change: And our next question comes from the line of Paul Treiber with RBC capital markets. Your line is open.

Richard: Things stabilize.

Richard: By the time, we enter the second half.

Speaker Change: Oh, thanks, very much and good afternoon.

Richard: Okay, Great and then I guess in a related question.

Speaker Change: On your outlook for the year I E.

Richard: Have any of your clients or have you observed any.

Speaker Change: Backend loaded growth you did mention you know macro and new products.

Richard: Kind of permanent structural changes in the market.

Jim Hannon: Now you nailed it, Richard. The clients are, we had a webinar today. So what we're seeing from clients is we're seeing actually improvements in underlying NOI and in valuations, including in office, which is an interesting turn in several quarters in a row. So that's a point of optimism amongst our client base. Of course, being able to predict their cost of capital is a little trickier. So we remain cautious on that. And so I said, we're staying very close to the clients on the leading indicators for us here, and we will manage the bottom line very closely, as we always do.

Richard: So how those changes would inform your decisions to invest in areas that certain areas of product or R&D.

Speaker Change:

Speaker Change: How quickly typically do you see new products ramp and then you know which is the more important driver do you think of an improvement in growth for the backup of the year is it really does availability of new products sort of pent up demand or are you anticipating that a macro improvement.

Richard: Yes.

Richard: I see a positive structural change, which is there is more private debt available. So the liquidity in the market is good and that has us doubling down on our focus on making sure. We are tailoring, particularly our our Vms services to the particular needs of the debt.

That would underpin a lot of that growth.

Paul Treiber: Paul It's great question. So let me, let me break that down into a couple of pieces.

Richard: Out of the market and we continue to grow clients and funds there and we'll continue to build out.

Speaker Change: When we think about our growth algorithm.

Speaker Change: I think the core of your question is how much is predicated on just organic market growth and we do expect some.

Richard: Our expertise in that.

Richard: Yeah.

Speaker Change: Okay and then just the last one for me I think you've talked about acquisitions in the past and you clearly have quite a bit of capacity now from a balance sheet perspective to do that can you just sort of remind us.

Speaker Change: The Q2 guide that we just gave is.

Speaker Change: Exactly in line with the model when we gave the Q1 guidance and the full year. We are still on that model every month, we do a bottoms up field outlook by product line. So we know where the and we do price times volume on that outlook. So we know.

Jim Hannon: So, on the recovery, like it's... Everyone in the world is watching. It can change day to day. But with what we know right now that some of our clients' activities and with the new products coming out, We feel good about our guidance range, and we have flexibility around that guidance to maintain our margins. So we're still banking on a back half of the year that we kind of work through the volatility that we're seeing right now, and that thing's stabilized by the time we enter the second half. Okay, great.

Speaker Change: The areas that you're most focused on and as the market for valuations today looking more compelling given that sort of soft backdrop are.

Speaker Change: Have they moved up down or stay the same so I'm curious to see what the uptake with debt funds that could be thanks.

Where the b assumptions could be a bit aggressive from the field.

Speaker Change: Yes.

Speaker Change: Kevin has modeled all of that out with sensitivities that give us.

Speaker Change: There were all up.

Speaker Change: Whole market saw there were a lot of prop Tech Darling is a few years ago.

Speaker Change: Comfort level around our range.

Speaker Change: That said, if something like wild came out macro economically we're not our guidance range is it <unk>.

Speaker Change: That that you saw us do our key strategic acquisitions, and you're now seeing those come through in our new products. So <unk> is the heart of the office side, which allows us to tie all of the models to the benchmarking the strategy <unk> acquisition gives us the attribution analysis.

Speaker Change: Handling or contemplating something crazy, but.

Speaker Change: Steady state and with the improvement and I think people are getting their head around the current environment. We think we have a reasonable set of volume assumptions now. We also as we said we have asset based pricing deals, which give us an opportunity to.

Jim Hannon: And I guess sort of in a related question, have any of your clients or have you observed any kind of permanent structural changes in the market? And if so, how those changes would inform your decisions to invest in certain areas of product or R&D? Yeah, I see a positive structural change, which is there's more private debt available. So the liquidity in the market is good. And that has us doubling down on our focus on making sure we are tailoring particularly our VMS services to the particular needs of the debt side of the market. And we continue to grow clients and funds there and we'll continue to build out our expertise in debt.

Speaker Change: That extra insight to our clients. So once you saw us make a cup and finance active put us on the debt side of things and for Berry.

Speaker Change: <unk>.

Speaker Change: With our wallet share with clients because clients see the value in it that they can.

Speaker Change: Gives us that.

Speaker Change: More of a global footprint and ease of use that expands our market. So outside of those key strategic acquisitions, you saw us really back off other than they are.

Speaker Change: You'll get a price bump, but their volume bump of number of users could be their whole their whole business. So from an <unk> perspective for us.

Speaker Change: <unk> heard me say I wouldn't I would be very happy to see <unk> come down because our absolute revenues are going up from the pricing and we want our clients, we want to be adopting as many products as possible and we're making that as easy as we can for them to do it.

Speaker Change: Our attempt to go for reps, which would have been a great acquisition, but other than that you saw us back off because our perspective was valuations were extremely lofty.

Speaker Change: Didn't meet our IRR requirements at our hurdle rates for acquisitions, we maintain.

Speaker Change: Then we have new logos that we're going after four very again expands our addressable market into the non heavy argus user or do you need is valuation and whilst those models tied to our platform and then we have the new products take up and adoption.

Jim Hannon: Okay, and just the last one for me, I think you've talked about acquisitions in the past, and you clearly have quite a bit of capacity now from a balance sheet perspective to do that. Can you just sort of remind us the areas that you're most focused on, and is the market for valuation today looking more compelling, you know, given that sort of soft backdrop, or have they moved up, down, like stayed the same? Just curious to see what the update on that would be.

Speaker Change: A very specific set of guidelines of how and when we'll pull the trigger on acquisitions in the financial hurdles and the strategic fit that they have to have that said valuations have come down significantly and we're getting a look at interesting things, but we're in no hurry, we're going to take our time were going to be super.

Speaker Change: I am very bullish on benchmark manager the entire architecture that we've been talking about building the platform with so that we could deliver that product at scale with platform economics, and we've done it and not only will it help our clients, but our Vms business is an excellent <unk>.

Speaker Change: Smart about this I don't feel like that cash is burning a hole in my pocket.

Jim Hannon: Thanks. Yep, it's, there were, as the whole market saw, there were a lot of PropTech darlings a few years ago that I've, that you saw us do our key strategic acquisitions, and you're now seeing those come through in our new products. So, Reonomy is the heart of the Altus ID, which allows us to tie all of the models to the benchmarking. The Stratodem acquisition gives us the attribution analysis. That provides that extra insight for our clients. So, once you saw us make a couple, and Finance Active put us on the debt side of things, and ForBerry gives us that.

Speaker Change: Right now, we're very happy to be returning capital to shareholders through a very strong share buyback program.

Speaker Change: Okay, great. Thank you.

Speaker Change: Appraisal business is an excellent proxy for our clients so our Vms business does.

Speaker Change: And our next question comes from the line of Paul Treiber with RBC capital markets. Your line is open.

Speaker Change: Tremendous amount of analysis for the biggest investors in the world. So we know what their requirements are we help them manage their data and the platform and benchmark manager in particular was built to accelerate the time to analysis and decisions. So we're bullish on that it will really have a.

Oh, thanks, very much and good afternoon.

Speaker Change: On on your outlook for the year the E P.

Speaker Change: Backend loaded growth you Didnt mentioned macro and new products.

Speaker Change: How.

Speaker Change: How quickly typically do you see new products ramp and then you know which is the more important driver do you think of an improvement in growth for the back half of the year is it really those availability of new products sort of pent up demand or are you anticipating that a macro improvement.

Speaker Change: Much bigger impact in 2006 as clients are deploying more and more of Rguest intelligence, which sets forth manager has to sit on top of so.

Jim Hannon: more of a global footprint and ease of use that expands our market. So outside of those key strategic acquisitions, you saw us really back off, other than our attempt to go for REVs, which would have been a great acquisition. But other than that, you saw us back off because our perspective was valuations were extremely lofty. They didn't meet our IRR requirements and our hurdle rates for acquisitions. We maintain a very specific set of guidelines of how and when we'll pull the trigger on acquisitions and the financial hurdles and the strategic fit that they have to have.

The pricing we are delivering the value of the asset base because their volumes go up.

Speaker Change: We do think volumes will come up in the second half will add new logos from new spaces like multifamily and then the new product adoption will be good this year, but will really accelerate in 'twenty six.

Speaker Change: That would underpin a lot of that growth.

Paul Treiber: Paul It's great question. So let me, let me break that down into a couple of pieces.

Paul Treiber: When we think about our growth algorithm. So I think the core of your question is how much is predicated on just organic market growth and we do expect some.

Speaker Change: Thanks for those details in terms of like the growth of.

Speaker Change: Asset based pricing you mentioned.

Paul Treiber: Q2 guide that we just gave is exactly in line with the model. When we gave the Q1 guidance and the full year. We are still on that model every month, we do a bottoms up field outlook by product line, So we know where the.

Speaker Change: <unk> of deals.

Speaker Change: How should we expect that to grow from here I mean, do you think you're just scratching the surface and <unk> ramped significantly in that and is that that you will continue to give going forward. So we can attract the adoption over time.

Jim Hannon: That said, valuations have come down significantly, and we're getting a look at interesting things, but we're in no hurry. We're going to take our time. We're going to be super smart about this. I don't feel like that cash is burning a hole in my pocket. And right now, we're very happy to be returning capital to shareholders through a very strong Share Buy Back program. Okay, great.

Speaker Change: Yeah. So.

Paul Treiber: And we do price times volume on that outlook. So we know where the b assumptions could be a bit aggressive from the field.

Speaker Change: On asset based pricing, we actually so for the very very small end of the low end of the market like one or two properties or assets.

Paul Treiber: Kevin has modeled all of that out with sensitivities that give us.

Speaker Change: It's really not worth our clients' time or archived to try to convert them radar. If they have one or two rguest licenses, we're just going to keep as frictionless commerce with them as we can and let them let them renew.

Paul Treiber: Our comfort level around our range.

Paul Treiber: That said, if something like wild came out macro economically we're not our guidance range is in cans.

Paul Treiber: Thank you. And our next question comes from the line of Paul Treiber with RBC Capital Markets. Your line is open. Thanks very much, and good afternoon. On your outlook for the year, there is back-end a lot of growth, and you did mention macro and new products. How quickly, typically, do you see new products ramp? And which is the more important driver, do you think, of an improvement in growth for the back-end of the year? Is it really those availability of new products? Is there a pent-up demand, or are you anticipating that a macro improvement would underpin a lot of that growth?

Paul Treiber: Handling or contemplating something crazy.

Speaker Change: License basis.

Speaker Change: Well you didn't actually expected broad adoption from the service providers to have a marquee service provider move to asset based pricing.

Paul Treiber: But.

Paul Treiber: Steady state and with the improvement and I think people are getting their head around the current environment. We think we have a reasonable set of volume assumptions now that we also as we said we have asset based pricing deals, which give us an opportunity to.

Speaker Change: We think that theres going to be a lot of fast followers from that.

Speaker Change: And I would also helped drive for Barry in the markets for for Barry is the best solution in August in the markets, where arguably the best solution without our clients having to go back to their it groups every time ago. Despite the budget to add one more user.

Paul Treiber: Lift our wallet share with clients because clients see the value in it that they can.

Paul Treiber: They'll get a price bump, but their volume bump of number of users could be their whole their whole business. So from an <unk> perspective for us.

Speaker Change: As frictionless as possible. So we think the industry is going to follow a fast on this.

Paul Treiber: <unk> has heard me say I would be very happy to see <unk> come down because our absolute revenues are going up from the pricing and we want our clients, we want to be adopting as many products as possible and we're making that as easy as we can for them to do it then we have new logos that we're going.

Jim Hannon: Paul, it's a great question, so let me break that down into a couple of pieces. When we think about our growth algorithm, so I think the core of your question is how much is predicated on just organic market growth? And we do expect some. The Q2 guide that we just gave is exactly in line with the model where we gave the Q1 guidance in the full year. We are still on that model. Every month we do a bottoms-up field outlook by product line. So we know where the, and we do price times volume on that outlook.

Speaker Change: Okay, that's great to hear all pipeline.

Speaker Change: Okay.

Speaker Change: Thanks, Bob.

Speaker Change: And our next question comes from the line of Scott <unk> with CIBC. Your line is open.

Paul Treiber: After four very again expands our addressable market into the non heavy argus user, but who needs valuation and whilst those models tied to a platform and then we have the new product take up and adoption.

Speaker Change: Hi, good evening.

Speaker Change: I'll ask one on capital return to the buyback in particular.

Speaker Change: Particular, obviously it was really very active in the quarter.

Could you just give us an idea of how youre expecting that to play out over the course of the year and weather.

Speaker Change: No.

Paul Treiber: I am very bullish on benchmark manager the entire architecture that we've been talking about building the platform with so that we could deliver that product at scale with platform economics, and we've done it and not only will it help our clients, but our Vms business is an excellent <unk>.

Speaker Change: A clear plan on timing and if that could change I guess whether.

Speaker Change: Other capital return.

Speaker Change: Our other capital allocation opportunities present themselves.

Jim Hannon: So we know where the assumptions could be a bit aggressive from the field. Pavan has modeled all of that out with sensitivities that give us a comfort level around our range. That said, if something like wild came out macro economically, we're not, our guidance range isn't handling or contemplating something crazy, but and others. So, we have a steady state and with the improvement and I think people getting their head around the current environment, we think we have a reasonable set of volume assumptions. Now, we also, as we said, we have asset-based pricing deals, which give us an opportunity to lift our wallet share with clients because clients see the value in it that they can – they'll get a price bump, but their volume bump of number of users could be their whole business.

Scott: Yes, Scott.

Scott: Great question and as we sat in some of the prepared remarks, we're extremely pleased with the traction that we made in Q1 against our NCI.

Paul Treiber: Appraisal business is an excellent proxy for our clients. So our Vms business does a tremendous amount of analysis for the biggest investors in the world. So we know what their requirements are we help them manage their data and the platform and benchmark manager in particular.

Scott: And on the share buybacks of assemblies at the $76 million.

Scott: That we accomplished in Q1.

Scott: Recall.

Scott: And originally edition that we said we wanted to do $250 million of share buyback over the course of three years with the heavier weighting.

Paul Treiber: Was built to accelerate the time to analysis and decisions. So we're bullish on that it will really have a much bigger impact in 2006 as clients are deploying more and more of Rguest intelligence, which sets forth manager has to sit on top of so the <unk>.

Scott: $150 million ish heavier weighting in the first year.

Scott: And obviously with that with the start that we had in Q1, we're well on that path.

Scott: And we're going to look to continue to continue to pursue that we have a very.

Paul Treiber: Pricing, we are delivering the value of the asset base because their volumes go up.

Paul Treiber: We do think volumes will come up in the second half will add new logos from new spaces like multifamily and then the new product adoption will be good this year.

Speaker Change: Cynthia in regards to valley.

Jim Hannon: And so, from an ARPU perspective for us, my team has heard me say I would be very happy to see our ARPU come down because our absolute revenues are going up from the pricing and we want our clients – we want to be adopting as many products as possible and we're making that as easy as we can for them to do it.

Speaker Change: Valuations and we're going to continue to take significant we're going to take it.

Paul Treiber: Really accelerate in 'twenty six.

Speaker Change: <unk> strong positioning and continuing to pursue that from a year to date perspective, I can share with you.

Paul Treiber: Thanks for those details.

Paul Treiber: In terms of like the growth of our asset.

Speaker Change: At $76 million is now at $107 million as of I believe close yesterday.

Paul Treiber: Asset based pricing you mentioned dozens of deals.

Jim Hannon: Then we have new logos that we're going after. ForBerry, again, expands our addressable market into the non-heavy Argus user, but who needs valuation and wants those models tied to a platform. And then we have the new product take up and adoption. I am very bullish on Benchmark Manager. The entire architecture that we've been talking about in building the platform was so that we could deliver that product at scale with platform economics and we've done it. And not only will it help our clients, but our VMS business is an excellent – and our appraisal business is an excellent proxy for our clients.

Paul Treiber: Yes.

Speaker Change: And so that tracks to continue so.

Paul Treiber: How should we expect that to grow from here I mean do you think it is.

Speaker Change: We said, we believe share buybacks is an excellent way to return value back to shareholders.

Paul Treiber: Scratching the surface and <unk> ramped significantly in that and is that that youll continue to give going forward. So we can attract the adoption over time.

Speaker Change: We're committed to that.

Speaker Change: And as Jim mentioned, we're going to Opportunistically look at other potential vehicles potential M&A.

Paul Treiber: Yeah. So.

Paul Treiber: On asset based pricing.

Speaker Change: The cash is not burning in our pocket and.

Paul Treiber: Actually so for the very very small end of the low end of the market like one or two properties or assets.

Speaker Change: And we believe that this share buyback.

Speaker Change: It's a great way to return that value back to shareholders. So that's the plan Scott hopefully that answers your question.

Paul Treiber: It's really not worth our clients' time or archived to try to convert them radar. If they have one or two rguest licenses, we're just going to keep as frictionless commerce with them as we can and let them let them renew.

Speaker Change: Yes, definitely thank you and then I'll just ask one on the margins very strong in the quarter for above the guidance range.

Speaker Change: Is there anything specific to call out in terms of.

Jim Hannon: So, our VMS business does a tremendous amount of analysis for the biggest investors in the world, so we know what their requirements are. We help them manage their data and the platform and Benchmark Manager in particular was built to accelerate the time to analysis and decisions, so we're bullish on that. It'll really have a much bigger impact in 26 as clients are deploying more and more of Argus Intelligence, which Benchmark Manager has to sit on top of. The pricing, we're delivering the value with the asset base because their volumes go up. We do think volumes will come up in the second half.

Paul Treiber: License basis.

Speaker Change: Outperforming what you thought you would do and then is there should we be expecting sort of.

Paul Treiber: Well you didn't actually expect broad adoption from the service providers to have a marquee service provider move to asset based pricing.

Speaker Change: Maybe near the high end of the guidance range for the full year, given our performance in the first quarter.

Speaker Change: Yes, and what that does the narrative around the margin expansion is not dissimilar from how we've talked about in the past and again, we continue to have a lot of.

Paul Treiber: We think that theres going to be a lot of fast followers from that.

Paul Treiber: And I would also helped drive for Barry in the markets for for Barry is the best solution in August in the markets, where arguably the best solution without our clients having to go back to their it groups every time ago. Despite the budget to add one more user.

Speaker Change: Continuing to Tampa moderate margin, we have a lot of control and really focusing on what we can control.

Speaker Change: Again, when you think about it.

Speaker Change: It's about the revenue.

Speaker Change: And at this point cost management approach to Eric's on the revenue side.

Paul Treiber: As frictionless as possible. So we think the industry is going to follow a fast on this.

Speaker Change: Cloud conversions continue to provide some degree of.

Paul Treiber: We'll add new logos from new spaces like multifamily, and then the new product adoption will be good this year. It'll really accelerate in 20 seconds. Thanks for those details.

Speaker Change: Tailwind.

Speaker Change: Okay, that's great to hear all pipeline.

Speaker Change: And that's kind of continuing as we move towards the full transition to the cloud.

Paul Treiber: Okay.

Paul Treiber: Thanks, Bob.

Speaker Change: And our next question comes from the line of Scott <unk> with CIBC. Your line is open.

Speaker Change: We are doing price slight growth in our valuation advisory upon renewals. So that's going to continue to be a tailwind from a revenue perspective.

Jim Hannon: In terms of like the the growth of asset based pricing, you mentioned, you know, dozens of deals.

Scott <unk>: Hi, good evening.

Speaker Change: I'll ask one on capital return to the buyback in particular.

Speaker Change: The price to value increases in our software subscriptions plus the left that we're going to get from the new product launches that debt that rich just talked about.

Jim Hannon: How should we expect that to grow from here? I mean, do you think you're just scratching the surface and, you know, ramp significantly? And is that a bet that you'll continue to give going forward so we can attract the adoption of it?

Speaker Change: Particular, obviously it was really very active in the quarter.

Speaker Change: Could you just give us an idea of how youre expecting that to play out over the course of the year and weather.

Scott: That's going to help us on the revenue side on the cost side of the equation Scott.

Speaker Change: No.

Speaker Change: A clear plan on timing and if that could change I guess whether.

Scott: Scott If you remember we did a pretty large restructuring last year, we're going to get dividends at that restructuring flowing through for the full year. This year.

Jim Hannon: Yeah, so on asset based pricing, we actually, so for the very, very small end of the market, low end of the market, like one or two properties or assets, It's really not worth our client's time or our time to try to convert them, right, or if they have one or two Argus licenses. We're just going to keep as frictionless commerce with them as we can and let them renew on license basis. We didn't actually expect broad adoption from the service providers to have a marquee service provider move to asset-based pricing. We think that there's going to be a lot of fast followers from that.

Speaker Change: Other capital return.

Speaker Change: Our other capital allocation opportunities present themselves.

Scott <unk>: Yes, Scott.

Scott <unk>: Great question and as we sat in some of the prepared remarks, we're extremely pleased with the traction that we made in Q1 against our NCI.

Scott: We are committed to continuing to glow grow the GSC and India, playing very reassuring.

Scott: Optimizing workflows, improving our delivery speeds.

Scott <unk>: On the share buybacks at a $70 million to $76 million.

Scott: <unk> appointed operational scalability and so when you combine.

Scott <unk>: That we accomplished in Q1.

Scott <unk>: Recall.

Scott: The revenue and the cost cost margin management efforts.

Scott <unk>: And originally edition that we said we wanted to do $250 million of share buyback over the course of three years with the heavier weighting.

Scott: Whereas we're at 32 minutes and being able to continue to scale our growth and feel comfortable.

Scott <unk>: $150 million ish heavier weighting in the first year.

Scott: We've got several levers to continue to drive the margin expansion.

Jim Hannon: And it would also help drive ForBerry in the markets where ForBerry is the best solution and Argus in the markets where Argus is the best solution. Without our clients having to go back to their IT groups every time we go, we'd like the budget to add one more user. It's stacked as frictionless as possible. So we think the industry is going to follow fast on this.

Scott: Okay.

Scott <unk>: And obviously with that with the start that we had in Q1, we're well on that path.

Scott: Okay, great well good progress apart.

Scott: Thank you.

Scott: And as a reminder, it is star one if you would like to join the queue.

Scott <unk>: And we're going to look to continue to continue to pursue that.

Scott <unk>: Have a very.

Speaker Change: And our next question comes from the line of Kevin Krishna Rodney with Scotiabank. Your line is open.

Scott <unk>: And here in regards to Val.

Scott <unk>: Valuation and we're going to continue to take significant we're going to take it.

Speaker Change: Hey, there good evening.

Speaker Change: On benchmark manager and maybe some of the AI products that you've got out there now can you maybe talk about adoption, where do you see adoption rates sort of going in.

Scott <unk>: <unk> strong positioning and continuing to pursue that from a year to date perspective, I can share with you.

Stephen Macleod: Okay, that's great to hear. I'll pass.

Stephen Macleod: Thanks a lot.

Scott <unk>: At $76 million is now at $107 million as of I believe close yesterday.

Scott Fletcher: And our next question comes from the line of Scott Fletcher with CIBC, your line is open. Hi, good evening. I'll ask one on capital return, the buyback in Paul Treiber, Raymond Mikulich, Stephen MacLeod, Unknown Attendee, Daniel Chan, Gavin Fairweather, You know, you have a clear plan on timing and if that can change, I guess, whether other capital return or other capital allocation opportunities present themselves. Yeah, Scott, it's a great question. And, you know, as we said, in some of the prepared remarks, we're extremely pleased with the with the traction that we made in Q1 against our NCIB on on the share buybacks for the 70 to $76 million that we accomplished in Q1.

Speaker Change: Bigger picture a lot of your customers may already have.

Scott <unk>: And so that tracks to continue sell.

Speaker Change: In house data science teams.

Speaker Change: How do you see your product.

Scott <unk>: We said, we believe share buybacks is an excellent way to return value back to shareholders.

Speaker Change: So in that context is it going to help support those teams is it going to be taking budget.

Scott <unk>: We're committed to that.

Speaker Change: As far as the budget for you if more of that their AI 18 strategy leveraging products like you always try to understand for the AI. The AI strategy and how you see it really fitting in in any era customers that strategy themselves going forward.

Scott <unk>: And as Jim mentioned, we're going to Opportunistically look at other potential vehicles potential M&A.

Scott <unk>: The cash is not burning in our pocket and.

Scott <unk>: And we believe that this share buyback.

Scott <unk>: It's a great way to return that value back to shareholders. So that's the plan Scott hopefully that answers your question.

Speaker Change: Yeah, Kevin Good question, Thanks for that.

Speaker Change: Let me just hit on a couple of other core value propositions of benchmark manager and then I'll talk a little bit about the.

Scott <unk>: Yes, definitely thank you and then I'll just ask one on the margins very strong in the quarter for above the guidance range is there anything specific to call out in terms of.

Speaker Change: I component as well.

Speaker Change: One of the more fundamental value propositions of benchmark manager is leveraging that unique identifier of the altice IV to bring all of the data together.

Scott <unk>: Outperforming what you thought you would do and then is there should we be expecting sort of.

Jim Hannon: If you recall, It originally positioned us, we said we wanted to do $250 million in shared buyback over the course of three years with a heavier rating, you know, 150 million-ish heavier rating in the first year. And obviously, with the start that we have in Q1, we're well on that path. And we're going to love to continue to pursue that. You know, we have a very Good view in regards to valuations, and we're going to continue to take a significant, we're going to take a significantly strong position in continuing to pursue that from a year to date perspective.

Scott <unk>: Maybe near the high end of the guidance range for the full year, given our performance in the first quarter.

Speaker Change: And thats something that <unk> been in house, a lot of our customers tell us is something that they need.

Scott <unk>: Yeah, and let's say the narrative around the margin expansion is not dissimilar from how we've talked about in the past and again, we continue to have a lot of.

Speaker Change: Help with.

Speaker Change: So that is a core value prop that I didn't want to talk about and then of course, that's the quality and the granularity of the benchmark and the depth and breadth of the benchmark and the ability to go down and drill down and understand why certain assets are under or over performing versus the hyper relevant incentive comp properties or something.

Scott <unk>: Continuing to Tampa to moderate margin, we have a lot of control and really focusing on what we can control again.

Scott <unk>: Again, when you think about it.

Scott <unk>: Their revenue.

Scott <unk>: And at this point cost management approach to Eric's on the revenue side.

Speaker Change: That comes through very clearly with benchmark manager and of course, given that is powered by the aggregated anonymised Rguest and BMS data within a specific client base. Obviously, you don't have the breadth of all of that.

Scott <unk>: Okay.

Scott <unk>: <unk> conversions continue to provide some degree of.

Scott <unk>: I have a tailwind.

Scott <unk>: And that's kind of continuing.

Scott <unk>: As we move towards the full transition to the cloud.

Speaker Change: Really helps to differentiate that as well.

Scott <unk>: We are doing price slight growth in our valuation and advisory upon renewals. So that's going to continue to be a tailwind from a revenue perspective.

Jim Hannon: I can share with you that seventy six million dollars is now at a hundred and seven million dollars as of, I believe, close yesterday. And so that traction continues. So, look, we said we believe share buybacks is an excellent way to return value back to shareholders. We're committed to that. As Jim mentioned, we're going to opportunistically look at other potential vehicles, potential M&A, but the cash is not burning in our pockets. And we believe that this share buyback is a great way to return that value back to shareholders. So that's the plan, Scott. Hopefully that answers your question.

Speaker Change: In terms of AI.

Speaker Change: Building on that and moving that forward to recommendation engine that not only show under or over performance, but then helped US suggest action to ultimately drive performance is something that we are heading towards as well.

Scott <unk>: And the price to value increases on our software subscriptions plus still left that we're going to get from the new product launches that that rich just talked about.

Scott <unk>: That's going to help us on the revenue side on the cost side of the equation.

Speaker Change: Got it thanks for that Super helpful. And then maybe just the last one from me just on the recurring book.

Speaker Change: Scott If you remember we did a pretty large restructuring last year, we're going to get dividends at that restructuring flowing through for the full year. This year.

Speaker Change: Bookings I think you mentioned excluding D. The Ryan contract, a 3% growth I think that it's quite a slowdown from what you saw in Q4 I might be reading the MD&A incorrectly correct me, if I'm wrong, there, but it just looks like the recurring new bookings was.

Scott <unk>: We are committed to continuing to grow that.

Scott <unk>: GSE, and India claims and very reassuring and optimizing workflows, improving our delivery speeds.

Scott Fletcher: Yeah, definitely. Thank you.

Scott Fletcher: And then I'll just ask one on the margins, very strong in the quarter for above the guidance range. Is there anything that specific to call out in terms?

Speaker Change: Later, excluding that that contract. So I'm just wondering if you can explain that trend there I know, it's really hard to kind of the way that you disclose the bucket, it's not really the greatest comparison.

Scott <unk>: And really supporting operational scalability and so when you combine the revenue and the cost staff cost margin.

Jim Hannon: outperforming what you thought you would do and then is there should we be expecting sort of may be near the high end of the guidance range for the full year given the performance in the first quarter. Yeah, and look, the narrative around the margin expansion is not dissimilar from how we've talked about it in the past. And again, we continue to have a lot of continue to be able to moderate margin, we have a lot of control and really focusing on what we can control. And again, when you think about it, you know, there's there's about the revenue and a disciplined cost management approach to it.

Speaker Change: But can you just talk about the trends that youre seeing there because I think you did mention software growth as being sort of squarely in the quarter.

Scott <unk>: Management efforts.

Scott <unk>: Whereas we're at 32 minutes and being able to continue to scale our growth and feel comfortable.

Kevin: Yes, Kevin.

Kevin: We did say this software growth was strong.

Scott <unk>: We've got several levers to continue to drive margin expansion.

Kevin: It's one of those that I wish we disclose the pieces of it but as you know we're going to move away from bookings which is.

Scott <unk>: Okay.

Scott <unk>: Okay, great well good progress apart.

Scott <unk>: Thank you.

Kevin: Internally, we're much more focused on IRR than <unk> at this point and as I said, both will start introducing those metrics at Investor day. So that we can explain exactly how we do all of them.

Scott <unk>: And as a reminder, it is star one if you would like to join the queue.

Speaker Change: Our next question comes from the line of Kevin Christian that Rodney with Scotiabank. Your line is open.

Jim Hannon: So on the revenue side, you know, the cloud conversions continue to provide some degree of a tailwind. And that's going to continue as we move towards the full transition to the cloud. We are doing price-led growth in our valuation advisory upon renewals, so that's going to continue to be tailwinds from a revenue perspective. And the price-to-value increases on our software subscriptions, plus the lift that we're going to get from the new product launches that Rich just talked about, it's going to help us on the revenue side.

Kevin: But the largest software growth was really impressive for us in.

Kevin Christian: Hey, there good evening I have a question on benchmark manager and maybe some of the AI products that you've got out there now can you maybe talk about adoption, where do you see adoption rates sort of going in but more bigger picture a lot of your customers may already have sort of in house data science teams how.

Kevin: In the quarter.

Kevin: Right.

Kevin: I was I was shocked given the market environment on the flip side. The Vms growth was not there which is completely predictable in this interest rate market because.

Speaker Change: How do you see your product.

Kevin Christian: In that context is it going to hell.

Speaker Change: Support those teams is it going to be taking budget.

Client.

Kevin: The Vms clients are kind of on a wait and hold on transactions overall, we're seeing complete transactions across the market.

Speaker Change: As far as the budget for you if more of that their AI strategy.

Speaker Change: Leveraging products like you at least try to understand sort of the AI. The AI strategy and how you see it really fitting in in any of our customers that strategy themselves going forward.

Jim Hannon: On the cost side of the equation... Scott, if you remember, we did a pretty large restructuring last year. We're going to get the dividends of that restructuring flowing through for the full year this year. We are committed to continuing to grow the GSE in India. It plays a very crucial role in optimizing workflows, improving our delivery speeds, and really supporting our operational scalability. And so when you combine both the revenue and the cost management efforts, we're pretty committed to being able to continue to scale and grow and feel comfortable that we've got several levers to continue to drive the margin expansion.

Kevin: Transactions of all sizes were down over 7% year over year, so with that where that manifests itself in the growth of BMS. So to put up the 3% growth excluding the data contract in this market with Vms flat.

Speaker Change: Yeah.

Kevin Christian: Yeah, Kevin Good question, Thanks for that.

Speaker Change: Let me just hit on a couple of other core value propositions of benchmark manager and then ill talk a little bit about the.

Kevin Christian: I component as well.

Kevin: As a really strong performance for our software business.

Kevin Christian: One of the more fundamental value propositions of benchmark manager is leveraging that unique identifier the altice IV to bring all of the data together.

Kevin: Okay, Yes, I hear you that all makes sense I.

Appreciate it thank you.

Kevin: Okay. Thank you.

Kevin Christian: And that's something that you've been in house, a lot of our customers tell us is something that they need.

Kevin: And as a reminder, it is star one if you would like to ask a question.

Kevin Christian: Help with so that is a core value prop that I didn't want to talk about and then of course, that's the quality and the granularity of the benchmark and the depth and breadth of the benchmark and the ability to go down and drill down and understand why certain assets are under or over performing versus the hyper relevant set of comp property.

Kevin: And with no further questions at this time I would now like to turn the conference back over to Mr. Jim Hannon for closing remarks.

Kevin: Okay.

Operator: Okay, great. Well, good progress so far. Thank you. And as a reminder, it is star one if you would like to join the queue.

Kevin: Alright, well my closing remarks, thank you as always for joining us.

Kevin: We're always available for the one on ones and follow ups, we look forward to talking about the quarter and what we see the rest of the year and hopefully most of you can make.

Kevin Christian: There's something that comes through very clearly we have benchmark manager and of course, given that is powered by the aggregated anonymised Rguest and BMS data within a specific client base. Obviously, you don't have the breadth of all of that.

Kevin Krishnaratne: And our next question comes from the line of Kevin Krishnaratne with Scotiabank. Hey there, good evening.

Kevin: At the Investor Day in September so thank you and we'll talk to you soon.

Kevin Krishnaratne: I have a question on, you know, Benchmark Manager and maybe some of the AI products that you've got out there now. Can you maybe talk about adoption? Where do you see adoption rates sort of going? And more bigger picture, a lot of your customers may already have sort of in-house data science teams. How do you see your product, you know, in that context? Is it going to help support those teams? Is it going to be taking budget? You know, as far as a budget for you, if more of their AI team strategy is leveraging products?

Kevin: Yeah.

Kevin: Ladies and gentlemen, this concludes today's call and we thank you for your participation you may now disconnect.

Kevin Christian: Really helps to differentiate that as well.

Speaker Change: In terms of AI.

Speaker Change: Building on that and moving that forward to recommendation engine that not only show under or over performance, but then help to suggest action to ultimately drive performance is something that we are heading towards as well.

Speaker Change: Got it thanks for that Super helpful. And then maybe just the last one for me just on the recurring book.

Richard Sarkis: I'm just trying to understand sort of the AI strategy and how you see it really fitting into your customers' strategies themselves going forward. Yeah, Kevin, good question. Thanks for that.

Bookings I think you mentioned, excluding the Orion contract a 3% growth I think that it's quite a slowdown from what you saw in Q4 I like your reading the MD&A and correctly correct me, if I'm wrong, there, but it just looks like the recurring new bookings was.

Richard Sarkis: Let me just hit on a couple of the core value propositions of Benchmark Manager, and then I'll talk a little bit about the AI component as well. One of the more fundamental value propositions of Benchmark Manager is leveraging that unique identifier, the Altus ID, to bring all of the data together. And that's something that even in-house a lot of our customers tell us is something that they need help with. So that is a core value prop that I did want to talk about. And then, of course, it's the quality and the granularity of the benchmark and the depth and breadth of the benchmark and the ability to go down and drill down and understand why certain assets are under or overperforming versus a hyper-relevant set of comp properties is something that comes through very clearly with Benchmark Manager.

Speaker Change: Bit lighter excluding that that contract. So I'm just wonder if you can explain that trend there I know, it's really hard to kind of the way that you disclose the bucket, it's not really the greatest comparison.

Speaker Change: But can you just talk about the trends that youre seeing there because I think you did mention software growth as being sort of squarely in the quarter.

Kevin Christian: Yes, Kevin.

Kevin Christian: We did say this software growth was strong.

Kevin Christian: It's one of those I wish to disclose the pieces of it but as you know we're going to move away from bookings which is.

Kevin Christian: Internally, we're much more focused on IRR than <unk> at this point and as I said, both will start introducing those metrics at Investor day. So that we can explain exactly how we do all of them.

Kevin: Okay.

Richard Sarkis: And of course, given that it's powered by the aggregated, anonymized, Argus, and BMS data that within a specific client, they obviously don't have the breadth of all of that, really helps to differentiate that as well.

Kevin Christian: But the largest software growth was really impressive for us in.

Kevin Christian: In the quarter.

Kevin Christian: Right.

Kevin Christian: I was shocked given the market environment on the flip side. The Vms growth was not there which is completely predictable in this interest rate market because.

Richard Sarkis: In terms of AI, building on that and moving that forward to recommendation engines that not only show under or overperformance, but then help to suggest action to ultimately drive performance is something that we are heading towards as well. Got it. No, thanks for that. Super helpful.

Kevin Christian: Client.

Kevin Christian: The Vms clients are kind of on a wait and hold on transactions overall, we're seeing complete transactions across the market like transaction fall sizes were down over 7% year over year.

Kevin Krishnaratne: And then maybe just the last one for me just on the recurring new bookings. I think you mentioned excluding the Ryan contract, 3% growth. I think that's quite a slowdown from what you saw in Q4. I might be reading the MD&A incorrectly, correct me if I'm wrong there, but it just looks like the recurring new bookings was a little bit lighter, excluding that contract. So I'm just wondering if you can explain that trend there. I know it's really hard to kind of, the way that you disclose the bookings, it's not really the greatest comparison. But can you just talk about the trends that you're seeing there?

Kevin Christian: No.

Kevin Christian: Where that manifests itself in the growth of BMS, so to put up that 3% growth. Excluding the data contract in this market with Vms flat is a really strong performance for our software business.

Kevin Christian: Okay, Yes.

Kevin Christian: That all makes sense.

Kevin Christian: Okay. Appreciate it thank you.

Kevin Christian: Okay. Thank you.

Jim Hannon: Because I think you did mention software growth as being sort of strong in the quarter. Yeah, Kevin, we We did say that software growth was strong.

Speaker Change: As a reminder, it is star one if you would like to ask a question.

Speaker Change: And with no further questions at this time I would now like to turn the conference back over to Mr. Jim Hannon for closing remarks.

Jim Hannon: It's one of those, I wish we disclosed the pieces of it, but as you know, we're gonna move away from bookings, which is internally, we're much more focused on ARR and NRR at this point. And as I said, we'll start introducing those metrics at Investor Day so that we can explain exactly how we do all of them. But the Argus software growth was really impressive for us. in the quarter, like I will. I will.

Speaker Change: Okay.

Speaker Change: Alright, well my closing remarks, thank you as always for joining us.

Speaker Change: We're always available for the one on ones and follow ups, we look forward to talking about the quarter and what we see the rest of the year and hopefully most of you can make dms.

Speaker Change: The Investor day in September so thank you and we'll talk to you soon.

Speaker Change: Yeah.

Speaker Change: Ladies and gentlemen, this concludes today's call and we thank you for your participation you may now disconnect.

Speaker Change: Yeah.

Speaker Change:

Jim Hannon: Unknown Attendee, Daniel Chan, Gavin Fairweather, Scott Fletcher, Unknown Attendee, Daniel Chan, The VMS clients are kind of on a wait-and-hold on transactions. Overall, we're seeing complete transactions across the market, like transactions of all sizes. We're down over 7% year-over-year. So where that manifests itself is in the growth of VMS. So to put up the 3% growth excluding the data contract in this market with VMS flat is a really strong performance for our software business. Okay, yeah, I hear you. That all makes sense, Jim. Thanks. Appreciate it.

Speaker Change:

Speaker Change:

Stephen Macleod: Have fun. Thank you.

Operator: And as a reminder, it is star one if you would like to ask a question.

Jim Hannon: And with no further questions at this time, I would now like to turn the conference back over to Mr. Jim Hannon for closing remarks. All right, well, my closing remarks is thank you, as always, for joining us. We are always available for the one-on-ones and follow-ups. We look forward to talking about the quarter and what we see the rest of the year, and hopefully most of you can make the Investor Day in September. So thank you, and we'll talk to you soon.

Operator: And ladies and gentlemen, this concludes today's call and we thank you for your participation. You may now